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Outsourcing Report template
NOTE: In plots, where there is “n=”, this figure refers to the total number of respondents in the row/column. This presentation is somewhat misleading and will be changed in future iterations.
Chapter 1
Using our working definition, how many of us could be described as outsourced?
According to our definition, 1 in 6 UK workers are outsourced.
Based on this definition, we’ve found that just under 17% of UK workers are ‘outsourced’1. Who makes up this group of 17% of UK workers?
In terms of the the different possible types of outsourced groups, the numbers are as follows:
- Definitely outsrouced: 11%
- Likely agency: 3%
- High indicators: 3%
Chapter 2: Who are the UK’s outsourced workers?
Top-line findings
Characteristics of outsourced work
Pay2
| Outsourcing group | Mean | Median | Min | Max | Standard dev. |
|---|---|---|---|---|---|
| Not outsourced | 27106.73 | 25200.5 | 2000 | 66669 | 13309.13 |
| Outsourced | 25058.37 | 24000.0 | 2400 | 66108 | 13022.18 |
The distribution for the different outsourcing groups is shown below. It indicates that income is particularly low for the ‘outsourced’ and ‘likely agency’ workers, whilst average income for the ‘high indicators’ workers is notably higher. This means that, were we not to consider the high indicators group, the difference in income between outsrouced and non-outsourced workers would be larger.
Although the average pay between non-outsourced and outsourced workers looks similar, a t-test finds that there is a marginally significant difference; outsourced workers are on average paid less than non-outsourced workers (t(1506.89) = 3.94, p = 0).
We can explore income in more detail by applying a threshold by which we determine whether someone is low paid or high paid, and seeing what proportion of outsourced and non-outsourced workers fall into these groupings.
To do this, we first determine an appropriate threshold by which to split the income data. As a proxy for the official UK low payment threshold (which is set at 2/3 median hourly pay, see here), we use 2/3 median gross annual income. As an alternative, we also consider 80% median gross annual income as a higher threshold. We make use of the most recent Annual Survey of Hours and Earnings (ASHE) data to contextualise these figures. Median gross annual income is determined from the ASHE data as £29669.
The plot below displays the income data for each group with the ASHE percentiles and low-pay thresholds overlaid. The ‘two thirds’ threshold (19779.3333333) is almost exactly equal to the ASHE 25th percentile (19783), and is also close the 25th percentile for each group (closer for the non-outsourced than outsourced group). The ‘four fifths’ threshold sits closer to the outsourced group’s median, at 23735.2. The ASHE median income is 29669. Notably, the ASHE median is higher than the median income for both outsourced and non outsourced groups (though more distant from outsourced than non-outsourced median), and the ASHE 75th percentile is quite distant from the 75th percentile for each group.
Based on this plot, a four-fifths median value would make a good threshold for splitting pay. It sits almost halfway between the ASHE 25th and 50th percentiles and is close to the outsourced group’s median value. Examining the density suggests that the non outsourced and outsourced groups have different distributions of income below this threshold. The outsourced group exhibits a linearly depleting density, whereas the non-outsourced group exhibits a sharper drop-off around the ASHE 25th percentile. The pattern suggests that there may be qualitative differences to explore between the two groups in this income range. We there use the ‘four-fifths median’ value of £23735.2 as the threshold between low and high pay.
[1] 48.6641
Applying this threshold to the data reveals that, controlling for age, gender, ethnicity, arrival time in the UK, and region, an outsourced person is 1.55 times more likely to be in the low paid group than a non-outsourced person (see plot below). 49% of outsourced workers fall into the low-paid group, compared to 42% of non-outsourced workers.^[/outputs/data/income_group_summary.csv
Breaking outsourcing status down by outsourcing group reveals that only the ‘outsourced’ and ‘likely agency’ groups are more likely to be low paid, whilst the ‘high indicators’ group is no more or less likely to be low paid compared to the ‘not outsourced’ group.
- ‘Outsourced’ workers are 1.66 times more likely to be in the low paid group than non-outsourced workers.
- ‘Likely agency’ workers are 1.63 times more likely to be in the low paid group than non-outsourced workers.
The plot below illustrates this.
Notably, 51% of outsourced workers are low paid, and 51% of likely agency workers are low paid, whilst 37% are low paid. This indicates that over half of outsourced and agency workers are low paid, whilst the high indicator group is overall better paid (even than the not outsourced group, though not significantly so).
Below, we run a linear regression testing whether the relationship between outsourcing status and annual income is influenced by income group (not low vs low), controlling for age, gender, ethnicity, and region. We do indeed find a significant interaction effect. The figure below plots this.
income_group = Not low:
outsourcing_status emmean SE df lower.CL upper.CL
Not outsourced 69924 11600 7462 47185 92664
Outsourced 97018 12041 7462 73414 120622
income_group = Low:
outsourcing_status emmean SE df lower.CL upper.CL
Not outsourced 29535 11667 7462 6664 52405
Outsourced 28011 12301 7462 3898 52125
Results are averaged over the levels of: 1 nuisance factors, Gender, Ethnicity_collapsed, Region
Confidence level used: 0.95
The results here indicate that among workers that are not paid below our low pay threshold, an outsourced worker can typically be expected to earn considerably more than a non-outsourced worker, whereas among workers that are paid below our low pay threshold, an outsourced worker can typically be expected to be paid the same as a non-outsourced worker (maybe slightly less). Of note is that for both pay groups, the variance in pay is higher for the outsourced group.
Exploring differences between outsourcing groups shows that this effect is driven mainly by the ‘outsourced’ group. In the non-low pay group, outsourced workers are paid more than non-outsourced workers, whereas in the low-pay group, outsourced workers are paid less than non-outsourced workers. For the likely agency and high indicator groups these differences do not apply.
income_group = Not low:
outsourcing_group emmean SE df lower.CL upper.CL
Not outsourced 69888 11604 7458 47141 92635
Outsourced 97705 12345 7458 73505 121906
Likely agency 95987 14733 7458 67106 124868
High indicators 95492 14156 7458 67742 123243
income_group = Low:
outsourcing_group emmean SE df lower.CL upper.CL
Not outsourced 29499 11671 7458 6621 52377
Outsourced 27879 12634 7458 3113 52644
Likely agency 29160 15866 7458 -1942 60263
High indicators 26975 17063 7458 -6473 60424
Results are averaged over the levels of: 1 nuisance factors, Gender, Ethnicity_collapsed, Region
Confidence level used: 0.95
These findings in combination suggest that the relationship between outsourced work and income is not straightforward and rather that there are types of outsourced work that are high-paying and types of outsourced work that are low paying. In the next section we explore the types of jobs that are more common in outsourced work.
Sector
Sector within outsourcing status
This framing shows how outsourced and non-outsourced workers are distributed across sectors.
| Not outsourced | Outsourced | |
|---|---|---|
| Accommodation and food service activities | 433 | 93 |
| Activities of extraterritorial organisations and bodies | 4 | 0 |
| Activities of households as employers | 20 | 11 |
| Administrative and support service activities | 212 | 96 |
| Agriculture, forestry and fishing | 27 | 5 |
| Arts, entertainment and recreation | 155 | 25 |
| Construction | 265 | 75 |
| Education | 1021 | 141 |
| Electricity, gas, steam and air conditioning supply | 102 | 22 |
| Financial and insurance activities | 444 | 93 |
| Human health and social work activities | 1500 | 274 |
| Information and communication | 409 | 105 |
| Manufacturing | 683 | 120 |
| Mining and quarrying | 9 | 0 |
| Na | 86 | 12 |
| Not found | 21 | 11 |
| Other service activities | 230 | 60 |
| Professional, scientific and technical activities | 376 | 82 |
| Public administration and defence | 745 | 74 |
| Real estate activities | 103 | 16 |
| Transportation and storage | 377 | 93 |
| Water supply | 64 | 22 |
| Wholesale and retail trade | 1185 | 253 |
The plot below shows the sector breakdown by outsourcing status. I.e. this is how outsourced and not outsourced workers are distributed across sectors.3
With this framing we could say things like “as an outsourced worker, you are x times more likely to work in
| number | Sector |
|---|---|
| 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES |
| 2 | ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES |
| 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US |
| 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES |
| 5 | AGRICULTURE, FORESTRY AND FISHING |
| 6 | ARTS, ENTERTAINMENT AND RECREATION |
| 7 | CONSTRUCTION |
| 8 | EDUCATION |
| 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY |
| 10 | FINANCIAL AND INSURANCE ACTIVITIES |
| 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES |
| 12 | INFORMATION AND COMMUNICATION |
| 13 | MANUFACTURING |
| 14 | MINING AND QUARRYING |
| 15 | Not found |
| 16 | OTHER SERVICE ACTIVITIES |
| 17 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES |
| 18 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY |
| 19 | REAL ESTATE ACTIVITIES |
| 20 | TRANSPORTATION AND STORAGE |
| 21 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
| 22 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES |
The table below shows what percentage of outsourced and non-outsourced workers work in each sector, as well as the difference between them (positive numbers in the difference column indicate sectors that are more common for outsourced work, negative numbers indicate sectors that are less common for outsourced work).4
It indicates that sectors that are less common for outsourced workers compared to not outsourced are:
- PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY
- EDUCATION
And sectors that are more common for outsourced workers compared to not outsourced are:
- ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
For these sectors that differ most in the concentration of the outsourced workforce, there is a pattern (if three data points can be called that) whereby in sectors with a relatively higher concentration of outsourced workers, outsourced workers are paid less, and in sectors with a relatively lower concentration of outsourced workers, outsourced workers are paid more. This is tenuous, but it is an example of the heterogeneity in income between sectors, and should be explored further.
| SectorName | SectorName_short | perc_Not outsourced | perc_Outsourced | perc_difference | wtd_avg_income_Not outsourced | wtd_avg_income_Outsourced | income_difference |
|---|---|---|---|---|---|---|---|
| 19 | Public administration and defence | 7.98 | 4.41 | -3.57 | 44269.46 | 80688.11 | 36418.64 |
| 4 | Administrative and support service activities | 2.76 | 6.30 | 3.54 | 34008.23 | 25773.63 | -8234.59 |
| 8 | Education | 11.00 | 8.17 | -2.83 | 42664.00 | 66203.95 | 23539.95 |
| 13 | Manufacturing | 8.39 | 7.28 | -1.10 | 47496.16 | 61992.04 | 14495.88 |
| 11 | Human health and social work activities | 16.74 | 15.81 | -0.93 | 34943.28 | 37315.45 | 2372.18 |
| 21 | Transportation and storage | 4.86 | 5.79 | 0.93 | 50974.51 | 40399.44 | -10575.07 |
| 7 | Construction | 3.22 | 4.13 | 0.91 | 57729.30 | 79257.70 | 21528.41 |
| 17 | Other service activities | 2.77 | 3.66 | 0.89 | 39021.24 | 49283.90 | 10262.65 |
| 22 | Water supply | 0.76 | 1.62 | 0.85 | 46514.17 | 50316.51 | 3802.34 |
| 1 | Accommodation and food service activities | 5.89 | 6.71 | 0.83 | 23814.49 | 46561.01 | 22746.52 |
| 12 | Information and communication | 4.58 | 5.32 | 0.74 | 63987.91 | 97333.04 | 33345.13 |
| 18 | Professional, scientific and technical activities | 3.92 | 4.66 | 0.74 | 53888.29 | 69683.01 | 15794.72 |
| 3 | Activities of households as employers | 0.31 | 0.86 | 0.54 | 57350.92 | 21162.34 | -36188.59 |
| 23 | Wholesale and retail trade | 15.43 | 14.93 | -0.49 | 36426.50 | 59181.02 | 22754.52 |
| 16 | Not found | 0.30 | 0.68 | 0.38 | 30372.90 | 30421.16 | 48.26 |
| 20 | Real estate activities | 1.25 | 0.97 | -0.29 | 39630.78 | 27557.00 | -12073.78 |
| 6 | Arts, entertainment and recreation | 1.81 | 1.61 | -0.20 | 26930.44 | 21607.35 | -5323.09 |
| 5 | Agriculture, forestry and fishing | 0.42 | 0.22 | -0.20 | 36423.88 | 25767.70 | -10656.18 |
| 9 | Electricity, gas, steam and air conditioning supply | 1.21 | 1.32 | 0.10 | 84854.37 | 73130.20 | -11724.17 |
| 10 | Financial and insurance activities | 4.91 | 4.81 | -0.10 | 62097.41 | 143214.64 | 81117.23 |
| 2 | Activities of extraterritorial organisations and bodies | 0.04 | NA | NA | 32367.32 | NA | NA |
| 14 | Mining and quarrying | 0.10 | NA | NA | 54859.57 | NA | NA |
The plot below plots the percentage difference in the concentration of outsourced vs non-outsourced workers (i.e. the difference between what proportion of workers of each type are in each sector) against the income difference for that sector (i.e., the difference in the average income between groups). Note that a statistical test of this relationship shows it is non-significant. This plot therefore only serves as an illustration of where workers are situated in terms of sector and pay. A key takeaway here is that there is considerable variation in the difference in pay between outsourced and non-outsourced workers. There also appears to be a central area where the concentration of outsourced vs non-outsourced workers is quite similar, but the pay for outsourced workers is lower. This might indicate sectors where employment of outsourced workers is as common as employment of non-outsourced workers, but where outsourced workers are paid less than non-outsourced workers. These sectors are:
- 5: AGRICULTURE, FORESTRY AND FISHING
- 6: ARTS, ENTERTAINMENT AND RECREATION
- 9: ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY
- 20: REAL ESTATE ACTIVITIES
Outsourcing status within sector5
This framing shows how sectors are composed, i.e., what proportion of workers in each sector are outsourced vs non-outsourced.
The plot below shows the proportion of outsourced and not outsourced workers within each sector. I.e. this is showing what sectors have higher and lower proportions of outsourced workers.
With this framing we could say things like “sector a is x times more likely to employ outsourced workers than sector b”
The table below shows the percentage of outsourced workers in each Sector, ordered descending by percentage. It shows that the top three Sectors with the highest proportion of outsourced workers are:
- ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US (note that N = 31)
- ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
- WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES
Note that for an undefined sector (‘Not found’) contained one of the largest proportions of outsourced workers (31% of workers in the ‘Not found’ category were outsourced).
| SectorName | SectorName_labelled | perc |
|---|---|---|
| 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US | 35.652378 |
| 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES | 31.570055 |
| 16 | Not found | 31.317619 |
| 22 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES | 30.008923 |
| 17 | OTHER SERVICE ACTIVITIES | 21.102417 |
| 7 | CONSTRUCTION | 20.589291 |
| 21 | TRANSPORTATION AND STORAGE | 19.415919 |
| 18 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES | 19.369714 |
| 12 | INFORMATION AND COMMUNICATION | 19.034279 |
| 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES | 18.738635 |
| 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY | 18.008232 |
| 10 | FINANCIAL AND INSURANCE ACTIVITIES | 16.529705 |
| 23 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES | 16.373830 |
| 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES | 16.037739 |
| 6 | ARTS, ENTERTAINMENT AND RECREATION | 15.255060 |
| 13 | MANUFACTURING | 14.939669 |
| 20 | REAL ESTATE ACTIVITIES | 13.504099 |
| 8 | EDUCATION | 13.065534 |
| 19 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY | 10.051123 |
| 5 | AGRICULTURE, FORESTRY AND FISHING | 9.709408 |
Exploring this workforce makeup in the context of income shows that there are some sectors where outsourced workers are paid more and some where they are paid less than non-outsourced workers. The plot below visualises this.
Sectors where outsourced workers are paid less:
- ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US (note that N = 31)
- ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES (note that N = 32)
- AGRICULTURE, FORESTRY AND FISHING
- ARTS, ENTERTAINMENT AND RECREATION
- ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY
- PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY
- REAL ESTATE ACTIVITIES
- WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES
Sectors where outsourced workers are paid more:
- ACCOMMODATION AND FOOD SERVICE ACTIVITIES
- CONSTRUCTION
- EDUCATION
- INFORMATION AND COMMUNICATION
- MANUFACTURING
- Not found
- OTHER SERVICE ACTIVITIES
- PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES
- REAL ESTATE ACTIVITIES
Note that in 2 or 3 of the Sectors where outsourced workers are paid less are low-paying Sectors. (this needs to be double-checked)
Apply the paysplit6
The percentages below show be read as e.g. 20% of low paid workers in accommodation and food services are outsourced, compared to 16% of not low paid workers in accommodation and food services.
statistically speaking
The table and plot below show the results of a model predicting income group from sector and outsourcing status. They specifically show the sectors where outsourced people are more or less likely to be in the low income group versus the not low income group.
The sectors where outsourced people, compared to non-outsourced people, are more likely to be in the low income group are Administrative and support service activities, Human health and social work activities, Manufacturing, Public administration and defence, Transportation and storage, whilst sectors where outsourced people are less likely to be in the low income group are Wholesale and retail trade.
| contrast | SectorName_short | estimate | SE | df | z.ratio | p.value | or | |
|---|---|---|---|---|---|---|---|---|
| 4 | Not outsourced - Outsourced | Administrative and support service activities | -0.5241628 | 0.2464021 | Inf | -2.127266 | 0.0333980 | 0.5920508 |
| 11 | Not outsourced - Outsourced | Human health and social work activities | -0.3377209 | 0.1425647 | Inf | -2.368895 | 0.0178413 | 0.7133944 |
| 13 | Not outsourced - Outsourced | Manufacturing | -0.8072450 | 0.2118374 | Inf | -3.810682 | 0.0001386 | 0.4460853 |
| 19 | Not outsourced - Outsourced | Public administration and defence | -0.6881532 | 0.2806935 | Inf | -2.451618 | 0.0142216 | 0.5025033 |
| 21 | Not outsourced - Outsourced | Transportation and storage | -0.7219743 | 0.2437603 | Inf | -2.961821 | 0.0030583 | 0.4857922 |
| 23 | Not outsourced - Outsourced | Wholesale and retail trade | 0.3754106 | 0.1453131 | Inf | 2.583460 | 0.0097815 | 1.4555890 |
Sector repeat: Outsourcing group
The plot below shows the distribution of sectors within each outsourcing group. The standout differences are:
- Greater proprotion of HUMAN HEALTH AND SOCIAL WORK ACTIVITIES in the ‘likely agency’ category, compared to other groups
- Greater proprotion of CONSTRUCTION in the ‘likely agency’ category, compared to other groups
- Greater proportion of ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES in the ‘outsourced’ category, compared to other groups
- Greater proportion of WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES in the ‘high indicators’ category, compared to other groups
(Really, this plot is better for showing the makeup of each type of outsroucing group - comparisons aer better made comparing outsroucing group within sectors. Here is a better way of interpeting these plots):
For the high indicator group, the sector with the largest proprotion of workers was WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES, closely followed by HUMAN HEALTH AND SOCIAL WORK ACTIVITIES.
For the likely agency group, the sector with the largest proprotion of workers was HUMAN HEALTH AND SOCIAL WORK ACTIVITIES.
For the outsourced group, the sector with the largest proprotion of workers was WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES, closely followed by HUMAN HEALTH AND SOCIAL WORK ACTIVITIES.
Note that also for the not outsourced group, the sector with the largest proprotion of workers was HUMAN HEALTH AND SOCIAL WORK ACTIVITIES, closely followed by WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES.
[This might say something about the demographics of the people who were sampled in this survey]
| number | Sector |
|---|---|
| 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES |
| 2 | ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES |
| 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US |
| 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES |
| 5 | AGRICULTURE, FORESTRY AND FISHING |
| 6 | ARTS, ENTERTAINMENT AND RECREATION |
| 7 | CONSTRUCTION |
| 8 | EDUCATION |
| 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY |
| 10 | FINANCIAL AND INSURANCE ACTIVITIES |
| 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES |
| 12 | INFORMATION AND COMMUNICATION |
| 13 | MANUFACTURING |
| 14 | MINING AND QUARRYING |
| 15 | Not found |
| 16 | OTHER SERVICE ACTIVITIES |
| 17 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES |
| 18 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY |
| 19 | REAL ESTATE ACTIVITIES |
| 20 | TRANSPORTATION AND STORAGE |
| 21 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
| 22 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES |
| outsourcing_group | SectorName | SectorName_labelled | perc |
|---|---|---|---|
| Not outsourced | 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES | 16.7360613 |
| Not outsourced | 23 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES | 15.4267755 |
| Not outsourced | 8 | EDUCATION | 10.9976142 |
| Not outsourced | 13 | MANUFACTURING | 8.3872365 |
| Not outsourced | 19 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY | 7.9832203 |
| Not outsourced | 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES | 5.8872856 |
| Not outsourced | 10 | FINANCIAL AND INSURANCE ACTIVITIES | 4.9095444 |
| Not outsourced | 21 | TRANSPORTATION AND STORAGE | 4.8584753 |
| Not outsourced | 12 | INFORMATION AND COMMUNICATION | 4.5805150 |
| Not outsourced | 18 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES | 3.9235934 |
| Not outsourced | 7 | CONSTRUCTION | 3.2214668 |
| Not outsourced | 17 | OTHER SERVICE ACTIVITIES | 2.7676269 |
| Not outsourced | 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES | 2.7603460 |
| Not outsourced | 6 | ARTS, ENTERTAINMENT AND RECREATION | 1.8053220 |
| Not outsourced | 20 | REAL ESTATE ACTIVITIES | 1.2521925 |
| Not outsourced | 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY | 1.2117371 |
| Not outsourced | 22 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES | 0.7627515 |
| Not outsourced | 5 | AGRICULTURE, FORESTRY AND FISHING | 0.4225971 |
| Not outsourced | 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US | 0.3123761 |
| Not outsourced | 16 | Not found | 0.3030015 |
| Not outsourced | 14 | MINING AND QUARRYING | 0.1034233 |
| Not outsourced | 2 | ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES | 0.0431916 |
| Outsourced | 23 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES | 14.8186202 |
| Outsourced | 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES | 14.1182403 |
| Outsourced | 8 | EDUCATION | 8.6944943 |
| Outsourced | 13 | MANUFACTURING | 7.1682245 |
| Outsourced | 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES | 7.1400736 |
| Outsourced | 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES | 6.7289225 |
| Outsourced | 21 | TRANSPORTATION AND STORAGE | 5.5518952 |
| Outsourced | 12 | INFORMATION AND COMMUNICATION | 5.2270278 |
| Outsourced | 18 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES | 5.1295921 |
| Outsourced | 10 | FINANCIAL AND INSURANCE ACTIVITIES | 4.8852436 |
| Outsourced | 19 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY | 4.6701148 |
| Outsourced | 17 | OTHER SERVICE ACTIVITIES | 4.0418607 |
| Outsourced | 7 | CONSTRUCTION | 3.6893071 |
| Outsourced | 22 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES | 1.7774160 |
| Outsourced | 6 | ARTS, ENTERTAINMENT AND RECREATION | 1.6604915 |
| Outsourced | 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY | 1.2565601 |
| Outsourced | 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US | 0.9852412 |
| Outsourced | 20 | REAL ESTATE ACTIVITIES | 0.8869119 |
| Outsourced | 16 | Not found | 0.6672183 |
| Outsourced | 5 | AGRICULTURE, FORESTRY AND FISHING | 0.2801044 |
| Likely agency | 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES | 22.3782074 |
| Likely agency | 23 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES | 11.7348709 |
| Likely agency | 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES | 9.5233357 |
| Likely agency | 13 | MANUFACTURING | 7.7512619 |
| Likely agency | 7 | CONSTRUCTION | 6.8292108 |
| Likely agency | 8 | EDUCATION | 5.9626362 |
| Likely agency | 21 | TRANSPORTATION AND STORAGE | 5.5687150 |
| Likely agency | 12 | INFORMATION AND COMMUNICATION | 5.1177601 |
| Likely agency | 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES | 5.0349824 |
| Likely agency | 19 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY | 4.9276124 |
| Likely agency | 10 | FINANCIAL AND INSURANCE ACTIVITIES | 4.2492270 |
| Likely agency | 18 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES | 2.5851476 |
| Likely agency | 17 | OTHER SERVICE ACTIVITIES | 1.8324543 |
| Likely agency | 6 | ARTS, ENTERTAINMENT AND RECREATION | 1.6318044 |
| Likely agency | 22 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES | 1.2974489 |
| Likely agency | 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY | 1.1617726 |
| Likely agency | 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US | 0.9038069 |
| Likely agency | 16 | Not found | 0.7203230 |
| Likely agency | 20 | REAL ESTATE ACTIVITIES | 0.5694658 |
| Likely agency | 5 | AGRICULTURE, FORESTRY AND FISHING | 0.2199565 |
| High indicators | 23 | WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES | 18.4511626 |
| High indicators | 11 | HUMAN HEALTH AND SOCIAL WORK ACTIVITIES | 16.5456358 |
| High indicators | 8 | EDUCATION | 8.1099485 |
| High indicators | 13 | MANUFACTURING | 7.3160094 |
| High indicators | 21 | TRANSPORTATION AND STORAGE | 6.9715309 |
| High indicators | 12 | INFORMATION AND COMMUNICATION | 5.9221553 |
| High indicators | 10 | FINANCIAL AND INSURANCE ACTIVITIES | 5.0133674 |
| High indicators | 18 | PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES | 4.6896460 |
| High indicators | 4 | ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES | 4.0053150 |
| High indicators | 1 | ACCOMMODATION AND FOOD SERVICE ACTIVITIES | 3.9750691 |
| High indicators | 17 | OTHER SERVICE ACTIVITIES | 3.8158394 |
| High indicators | 7 | CONSTRUCTION | 3.3883241 |
| High indicators | 19 | PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY | 2.8467744 |
| High indicators | 9 | ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY | 1.7075018 |
| High indicators | 20 | REAL ESTATE ACTIVITIES | 1.6732156 |
| High indicators | 6 | ARTS, ENTERTAINMENT AND RECREATION | 1.3609799 |
| High indicators | 22 | WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES | 1.2566393 |
| High indicators | 16 | Not found | 0.7135371 |
| High indicators | 3 | ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN US | 0.2744929 |
13/05 MORE TO DO HERE FOR SECTOR AS ABOVE
Paysplit - sector x outsourcing group
statistically speaking
The table and plot below show the results of a model predicting income group from sector and outsourcing group. The comparisons indicate that only a few differences between outsourced and not outsourced people were significant. Specifically, the sectors where outsourced people, compared to non-outsourced people, are more likely to be in the low income group are Education, Manufacturing, Public administration and defence, Transportation and storage.
Notably, education features here where it did not in the overall outsourcing status comparison. Inspection of the plot below shows that this is because there are no differences between high indicators, likely agency, and not outsourced people in education.
The other sectors identified here all featured in the outsourcing status comparison earlier. The sectors that were relevant for the status comparison but absent here are Admin support, Human health and social work, and wholesale retail and trade.
The difference for admin supp
The difference for social work seems to be due to agency workers and outsourced being higher (i.e., separating them dilutes the effect )
| contrast | SectorName_short | estimate | SE | df | z.ratio | p.value | or | |
|---|---|---|---|---|---|---|---|---|
| 43 | Not outsourced - Outsourced | Education | -0.6563763 | 0.2432472 | Inf | -2.698392 | 0.0351346 | 0.5187277 |
| 73 | Not outsourced - Outsourced | Manufacturing | -0.8401625 | 0.2530652 | Inf | -3.319945 | 0.0049874 | 0.4316404 |
| 109 | Not outsourced - Outsourced | Public administration and defence | -0.8874326 | 0.3229445 | Inf | -2.747942 | 0.0305411 | 0.4117114 |
| 121 | Not outsourced - Outsourced | Transportation and storage | -0.9250865 | 0.2850880 | Inf | -3.244916 | 0.0064541 | 0.3964971 |
Major group code
Comparison of Majorgroupcode indicates that a higher proportion of outsourced people work in Elementary Occupations, compared to non-outsourced people. A lower proportion of outsourced people work in administrative and secretarial occupations, associate professional occupations and professional occupations.
| number | Major.group.code |
|---|---|
| 1 | ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS |
| 2 | ASSOCIATE PROFESSIONAL OCCUPATIONS |
| 3 | CARING, LEISURE AND OTHER SERVICE OCCUPATIONS |
| 4 | ELEMENTARY OCCUPATIONS |
| 5 | MANAGERS, DIRECTORS AND SENIOR OFFICIALS |
| 6 | NA |
| 7 | PROCESS, PLANT AND MACHINE OPERATIVES |
| 8 | PROFESSIONAL OCCUPATIONS |
| 9 | SALES AND CUSTOMER SERVICE OCCUPATIONS |
| 10 | SKILLED TRADES OCCUPATIONS |
| 11 | NA |
The table below shows the percentage of outsourced and non-outsourced workers in each majorgroupcode, as well as the difference between them (positive numbers in the difference column indicate occupations that are more common for outsourced work, negative numbers indicate occupations that are less common for outsourced work).8
| Majorgroupcode | Not outsourced | Outsourced | Difference |
|---|---|---|---|
| ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS | 14.09 | 10.23 | -3.85 |
| ASSOCIATE PROFESSIONAL OCCUPATIONS | 13.23 | 9.35 | -3.88 |
| CARING, LEISURE AND OTHER SERVICE OCCUPATIONS | 8.85 | 10.00 | 1.14 |
| ELEMENTARY OCCUPATIONS | 8.84 | 17.12 | 8.28 |
| MANAGERS, DIRECTORS AND SENIOR OFFICIALS | 11.07 | 12.23 | 1.16 |
| NA | 0.41 | 0.29 | -0.12 |
| PROCESS, PLANT AND MACHINE OPERATIVES | 6.19 | 6.99 | 0.80 |
| PROFESSIONAL OCCUPATIONS | 19.92 | 17.57 | -2.35 |
| SALES AND CUSTOMER SERVICE OCCUPATIONS | 12.06 | 10.97 | -1.10 |
| SKILLED TRADES OCCUPATIONS | 5.32 | 5.24 | -0.07 |
| NA | 0.01 | NA | NA |
| Majorgroupcode | Not outsourced | Outsourced | Ratio_10 |
|---|---|---|---|
| ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS | 87.19 | 12.81 | 1.47 |
| ASSOCIATE PROFESSIONAL OCCUPATIONS | 87.49 | 12.51 | 1.43 |
| CARING, LEISURE AND OTHER SERVICE OCCUPATIONS | 81.41 | 18.59 | 2.28 |
| ELEMENTARY OCCUPATIONS | 71.86 | 28.14 | 3.92 |
| MANAGERS, DIRECTORS AND SENIOR OFFICIALS | 81.73 | 18.27 | 2.24 |
| NA | 87.59 | 12.41 | 1.42 |
| PROCESS, PLANT AND MACHINE OPERATIVES | 81.41 | 18.59 | 2.28 |
| PROFESSIONAL OCCUPATIONS | 84.86 | 15.14 | 1.78 |
| SALES AND CUSTOMER SERVICE OCCUPATIONS | 84.47 | 15.53 | 1.84 |
| SKILLED TRADES OCCUPATIONS | 83.37 | 16.63 | 1.99 |
The plot below summarises the average pay (x-axis) in each occupation (y-axis) for outsourced and non-outsourced workers (dot colour), as well as the size of the respective workforce (size of dots). Here the size of the dot represents the percentage of workers within the sector who are outsourced (blue) or not outsourced (purple).9
It shows, as might be expected, the size of the outsourced workforce for each sector is smaller than the non-outsourced workforce, but the ratio is not the same for all sectors. The sector with the largest non-outsourced:outsourced ratio is Elementary occupations; for every 10 non-outsourced workers, there are 4 outsourced workers. This is followed by caring, leisure, and other service occupations, and process, plant and machine operatives, both of which employ 2 outsourced workers for every 10 non-outsourced workers.
Notably, in elementary occupations and sales and customer service occupations, outsourced workers are on average paid more than non-outsourced workers. In contrast, workers in process, plant and machine operations are paid less if they are outsourced than if they are not outsourced.
Unit occupations
A deep dive into elementary occupations, process occupations, and caring occupations reveals that there are differences between occupations in the size of the outsourced workforce and pay.
Elementary occupations10
Process occupations11
Caring occupations12
Where are the UK’s outsourced workers?13
Let’s cross check the size of the employed workforce across regions, and compare this to how many people are in each region in our sample. The percentages should work out the same if they’re weighted.
The tables below show that our sample is weighted by region. The weighted percentage of our sampled workers in each region matches the percentages from the ONS employment by region tables. This means that the weighted percentage of workers (and therefore outsourced workers) in our sample can be considered to be representative of the national picture.
| Region | Employed | sample_sum | employment_data_perc | sample_wtd_perc |
|---|---|---|---|---|
| London | 4829298851 | 1431.0519 | 14.557314 | 14.092092 |
| South East | 4753437758 | 1420.8114 | 14.328640 | 13.991250 |
| North West | 3583507881 | 1095.8237 | 10.802034 | 10.790977 |
| West Midlands | 2882955040 | 879.5148 | 8.690305 | 8.660903 |
| Scotland | 2650815533 | 853.0980 | 7.990550 | 8.400768 |
| South West | 2802120873 | 837.8587 | 8.446641 | 8.250701 |
| East Midlands | 2359055655 | 728.1845 | 7.111077 | 7.170699 |
| Wales | 1436559071 | 461.0781 | 4.330327 | 4.540405 |
| North East | 1215820684 | 386.9397 | 3.664938 | 3.810337 |
| Northern Ireland | 873773187 | 275.2233 | 2.633879 | 2.710224 |
The plot below shows the distribution of outsourced and non outsourced workers across regions. It suggests that an outsourced worker is more likely to be based in London than a non-outsourced worker. The plot can be read, e.g., “~20% of outsourced workers work in London”
| Outsourcing status | Region | Frequency | Sum | Percentage |
|---|---|---|---|---|
| Not outsourced | London | 1073.70 | 8446.64 | 12.71 |
| Not outsourced | East Midlands | 587.69 | 8446.64 | 6.96 |
| Not outsourced | East of England | 841.35 | 8446.64 | 9.96 |
| Not outsourced | North East | 333.88 | 8446.64 | 3.95 |
| Not outsourced | North West | 906.43 | 8446.64 | 10.73 |
| Not outsourced | Northern Ireland | 231.66 | 8446.64 | 2.74 |
| Not outsourced | Scotland | 727.28 | 8446.64 | 8.61 |
| Not outsourced | South East | 1232.34 | 8446.64 | 14.59 |
| Not outsourced | South West | 717.36 | 8446.64 | 8.49 |
| Not outsourced | Wales | 377.83 | 8446.64 | 4.47 |
| Not outsourced | West Midlands | 718.03 | 8446.64 | 8.50 |
| Not outsourced | Yorkshire and the Humber | 699.11 | 8446.64 | 8.28 |
| Outsourced | London | 357.35 | 1708.36 | 20.92 |
| Outsourced | East Midlands | 140.50 | 1708.36 | 8.22 |
| Outsourced | East of England | 125.49 | 1708.36 | 7.35 |
| Outsourced | North East | 53.06 | 1708.36 | 3.11 |
| Outsourced | North West | 189.39 | 1708.36 | 11.09 |
| Outsourced | Northern Ireland | 43.56 | 1708.36 | 2.55 |
| Outsourced | Scotland | 125.82 | 1708.36 | 7.37 |
| Outsourced | South East | 188.47 | 1708.36 | 11.03 |
| Outsourced | South West | 120.50 | 1708.36 | 7.05 |
| Outsourced | Wales | 83.25 | 1708.36 | 4.87 |
| Outsourced | West Midlands | 161.49 | 1708.36 | 9.45 |
| Outsourced | Yorkshire and the Humber | 119.46 | 1708.36 | 6.99 |
To visualise this differently, below we calculate the proportion of workers within each region who are outsourced. The plot can be read e.g., “~25% of workers in London are outsourced.”14
Below we map the workforce composition in each region (i.e., these figures correspond to the second of the two plots above). The first map emphasises that London has the highest concentration of outsourced workers (25%).
The second map excludes London so that is easier to see how the remaining regions compare. After London, the regions with the highest proportion of outsourced workers are:
- East Midlands (19%)
- West Midlands (18%)
- Wales (18%)
- North West (17%)
- Northern Ireland (16%)
We can also explore how the the entire UK workforce is distributed across the country.15 The table and map below show the percentage of outsourced workers in each region as a proportion of the total UK workforce. They show where the UK’s outsourced workforce is concentrated. The regions with the highest share of the UK’s outsourced workforce are:
- London (21%)
- North West (11%)
- South East (11%)
- West Midlands (9%)
- East Midlands (8%)
| Region | Frequency | Sum | Percentage |
|---|---|---|---|
| London | 357.35 | 1708.36 | 20.92 |
| North West | 189.39 | 1708.36 | 11.09 |
| South East | 188.47 | 1708.36 | 11.03 |
| West Midlands | 161.49 | 1708.36 | 9.45 |
| East Midlands | 140.50 | 1708.36 | 8.22 |
| Scotland | 125.82 | 1708.36 | 7.37 |
| East of England | 125.49 | 1708.36 | 7.35 |
| South West | 120.50 | 1708.36 | 7.05 |
| Yorkshire and the Humber | 119.46 | 1708.36 | 6.99 |
| Wales | 83.25 | 1708.36 | 4.87 |
| North East | 53.06 | 1708.36 | 3.11 |
| Northern Ireland | 43.56 | 1708.36 | 2.55 |
Who are the UK’s outsourced workers?
To start with, we can create a generalised linear model predicting outsourcing status from the various demographics. Outsourcing status is a binary variable that groups people as either ‘outsourced’ or ‘not outsourced’.
We construct a generalised linear models to predicting outsourcing status. The model has the following terms:
- Age
- Ethnicity
- Arrival in UK
- Gender
- Region
| outsourcing_status | |||
| Predictors | Odds Ratios | CI | p |
| (Intercept) | 0.46 | 0.37 – 0.58 | <0.001 |
| Age | 0.98 | 0.98 – 0.98 | <0.001 |
| Ethnicity_collapsedWhite other | 0.79 | 0.59 – 1.05 | 0.103 |
| Ethnicity_collapsedBlack Caribbean | 0.89 | 0.54 – 1.42 | 0.653 |
| Ethnicity_collapsedBlack African | 1.56 | 1.14 – 2.12 | 0.005 |
| Ethnicity_collapsedMixed other | 1.59 | 0.97 – 2.54 | 0.058 |
| Ethnicity_collapsedSouth Asian | 1.43 | 1.14 – 1.78 | 0.001 |
| Ethnicity_collapsedEast Asian | 0.61 | 0.36 – 0.97 | 0.046 |
| Ethnicity_collapsedOther | 1.23 | 0.97 – 1.54 | 0.081 |
| Ethnicity_collapsedBlack other | 1.85 | 0.88 – 3.70 | 0.091 |
| Ethnicity_collapsedArab | 1.94 | 0.90 – 4.03 | 0.079 |
| BORNUK_labelledWithin the last year | 1.75 | 1.18 – 2.56 | 0.005 |
| BORNUK_labelledWithin the last 3 years | 1.07 | 0.72 – 1.57 | 0.719 |
| BORNUK_labelledWithin the last 5 years | 1.20 | 0.80 – 1.78 | 0.362 |
| BORNUK_labelledWithin the last 10 years | 1.95 | 1.43 – 2.64 | <0.001 |
| BORNUK_labelledWithin the last 15 years | 1.84 | 1.30 – 2.59 | <0.001 |
| BORNUK_labelledWithin the last 20 years | 1.83 | 1.27 – 2.62 | 0.001 |
| BORNUK_labelledWithin the last 30 years | 0.54 | 0.28 – 0.95 | 0.044 |
| BORNUK_labelledMore than 30 years ago | 2.08 | 1.47 – 2.91 | <0.001 |
| BORNUK_labelledPrefer not to say | 1.12 | 0.70 – 1.75 | 0.617 |
| GenderMale | 1.41 | 1.27 – 1.57 | <0.001 |
| GenderOther | 1.17 | 0.24 – 3.88 | 0.818 |
| GenderPrefer not to say | 0.77 | 0.32 – 1.59 | 0.514 |
| RegionEast Midlands | 0.91 | 0.73 – 1.15 | 0.445 |
| RegionEast of England | 0.59 | 0.46 – 0.74 | <0.001 |
| RegionNorth East | 0.63 | 0.45 – 0.86 | 0.005 |
| RegionNorth West | 0.84 | 0.68 – 1.04 | 0.104 |
| RegionNorthern Ireland | 0.79 | 0.55 – 1.12 | 0.200 |
| RegionScotland | 0.69 | 0.54 – 0.87 | 0.002 |
| RegionSouth East | 0.61 | 0.49 – 0.75 | <0.001 |
| RegionSouth West | 0.67 | 0.53 – 0.85 | 0.001 |
| RegionWales | 0.87 | 0.65 – 1.14 | 0.313 |
| RegionWest Midlands | 0.84 | 0.67 – 1.04 | 0.104 |
| RegionYorkshire and the Humber | 0.66 | 0.52 – 0.83 | 0.001 |
| Observations | 10155 | ||
| R2 Tjur | 0.042 | ||
The results show that a person is more likely to outsourced if they:
- Are younger (compared to older); for each year older a person is, they are 0.98 times as likely (i.e., less likely) to be outsourced.
- Are African or South Asian (compared to White British);
- Black African people are 1.56 times more likely than White people to be outsourced.
- South Asian people are 1.43 times more likely than White people to be outsourced.
- In contrast, East Asian people are 0.61 times as likely (i.e., less likely) than White people to be outsourced.
- Moved to the UK in last year, 10 years, 15 years, 20 years, 30 years, or more than 30 years (compared to born in UK)
- People who moved to the UK in the last year are 1.75 times more likely to be outsourced than people born in the UK.
- People who moved to the UK in the last 10 years are 1.95 times more likely to be outsourced than people born in the UK.
- People who moved to the UK in the last 15 years are 1.84 times more likely to be outsourced than people born in the UK.
- People who moved to the UK in the last 20 years are 1.83 times more likely to be outsourced than people born in the UK.
- People who moved to the UK more than 30 years ago are 2.08 times more likely to be outsourced than people born in the UK.
- In contrast, people who moved to the UK in the last 30 years are 0.54 times as likely (i.e., less likely) to be outsourced than people born in the UK.
- Are male (compared to female); men are 1.41 times more likely than women to be outsourced.
- Live in London, compared to East of England, North East, Scotland, South East, South West
- People who live in the East of England are 0.59 as likely (i.e., less likely) to be outsourced, compared to people who live in London.
- People who live in the North East are 0.63 as likely (i.e., less likely) to be outsourced, compared to people who live in London.
- People who live in Scotland are 0.69 as likely (i.e., less likely) to be outsourced, compared to people who live in London.
- People who live in the South East of England are 0.61 as likely (i.e., less likely) to be outsourced, compared to people who live in London.
- People who live in Yorkshire and the Humber are 0.66 as likely (i.e., less likely) to be outsourced, compared to people who live in London.
Based on this GLM, several demographic factors stand out as relevant to outsourcing. These are:
- Age
- Gender
- Ethnicity
- Arrival time in the UK
In this section we explore each of these characteristics as they relate to ‘outsourcing status’, ‘outsourcing group’ (which are the different ‘subgroups’ of outsourcing: ‘outsourced’, ‘likely agency’, and ‘high indicators’), and income.
Age
Outsourcing status
As shown in the table below, the median age of the outsourced group is 36 , compared to 43 for the not outsourced group.16
However, as the next figure shows, the age distribution is different for the outsourced and high indicator groups compared to the not outsourced and likely agency groups; the outsourced and high indicator groups have higher proportions of younger people (~21-36 year olds).
A t-test indicates that on average, outsourced workers are significantly younger than non-outsourced workers (t(2399.2) = 11.95, p = 0).
| Outsourcing group | Mean | Median | Min | Max | Standard dev. |
|---|---|---|---|---|---|
| Not outsourced | 42.80 | 43 | 16 | 80 | 13.08 |
| Outsourced | 38.63 | 36 | 16 | 78 | 13.07 |
Outsourcing group17
Exploring the age distribution for the different outsourced groups, the high density concentration of slightly younger workers identified above appears to be driven primarily by the ‘outsourced’ and ‘high indicator’ groups. The ‘likely agency’ group follows a similar pattern, but has a lower density peak than the other groups, with a higher density of workers of more advanced ages.
| Outsourcing group | Mean | Median | Min | Max | Standard dev. |
|---|---|---|---|---|---|
| Not outsourced | 42.80 | 43 | 16 | 80 | 13.08 |
| Outsourced | 38.40 | 35 | 16 | 78 | 13.09 |
| Likely agency | 39.80 | 38 | 18 | 77 | 13.49 |
| High indicators | 38.49 | 35 | 18 | 72 | 12.55 |
Ethnicity
Breaking down by ethnicity shows that the outsourced group has a lower proportion of White workers compared to the non-outsourced group. For example, in the outsourced group, the proportion of British (‘White’) workers is 66.91 %, compared to 78.01% in the not outsourced group. Needless to say, this means that there is a correspondingly higher proportion of workers from minority backgrounds in the outsourced group, notably from African (4.1%) and other White backgrounds (5.5, amongst others.18 These differences mean that outsourced workers are 1.87 times more likely to be a member of minority ethnicity than non-outsourced workers.
| outsourcing_status | Ethnicity_labelled | n | Frequency | N | Sum | Percentage | Ethnicity_short | Ethnicity detail |
|---|---|---|---|---|---|---|---|---|
| Not outsourced | English / Welsh / Scottish / Northern Irish / British | 6623 | 6589.16 | 8472 | 8446.64 | 78.01 | English | Welsh / Scottish / Northern Irish / British |
| Not outsourced | Irish | 111 | 98.75 | 8472 | 8446.64 | 1.17 | Irish | NA |
| Not outsourced | Gypsy or Irish Traveller | 6 | 8.32 | 8472 | 8446.64 | 0.10 | Gypsy or Irish Traveller | NA |
| Not outsourced | Roma | 4 | 5.24 | 8472 | 8446.64 | 0.06 | Roma | NA |
| Not outsourced | Any other White background | 369 | 385.42 | 8472 | 8446.64 | 4.56 | Any other White background | NA |
| Not outsourced | White and Black Caribbean | 84 | 53.22 | 8472 | 8446.64 | 0.63 | White and Black Caribbean | NA |
| Not outsourced | White and Black African | 40 | 20.43 | 8472 | 8446.64 | 0.24 | White and Black African | NA |
| Not outsourced | White and Asian | 61 | 32.39 | 8472 | 8446.64 | 0.38 | White and Asian | NA |
| Not outsourced | Any other Mixed / Multiple ethnic background | 59 | 33.60 | 8472 | 8446.64 | 0.40 | Any other Mixed | Multiple ethnic background |
| Not outsourced | Indian | 170 | 237.76 | 8472 | 8446.64 | 2.81 | Indian | NA |
| Not outsourced | Pakistani | 93 | 96.09 | 8472 | 8446.64 | 1.14 | Pakistani | NA |
| Not outsourced | Bangladeshi | 47 | 53.46 | 8472 | 8446.64 | 0.63 | Bangladeshi | NA |
| Not outsourced | Chinese | 70 | 124.50 | 8472 | 8446.64 | 1.47 | Chinese | NA |
| Not outsourced | Any other Asian background | 57 | 118.35 | 8472 | 8446.64 | 1.40 | Any other Asian background | NA |
| Not outsourced | African | 232 | 157.09 | 8472 | 8446.64 | 1.86 | African | NA |
| Not outsourced | Caribbean | 74 | 56.56 | 8472 | 8446.64 | 0.67 | Caribbean | NA |
| Not outsourced | Any other Black, Black British, or Caribbean background | 36 | 25.60 | 8472 | 8446.64 | 0.30 | Any other Black | Black British, or Caribbean background |
| Not outsourced | Arab | 12 | 20.47 | 8472 | 8446.64 | 0.24 | Arab | NA |
| Not outsourced | Any other ethnic group | 13 | 23.40 | 8472 | 8446.64 | 0.28 | Any other ethnic group | NA |
| Not outsourced | Don’t think of myself as any of these | 7 | 5.87 | 8472 | 8446.64 | 0.07 | Don’t think of myself as any of these | NA |
| Not outsourced | Prefer not to say | 22 | 23.54 | 8472 | 8446.64 | 0.28 | Prefer not to say | NA |
| Not outsourced | NA | 282 | 277.44 | 8472 | 8446.64 | 3.28 | NA | NA |
| Outsourced | English / Welsh / Scottish / Northern Irish / British | 1124 | 1143.07 | 1683 | 1708.36 | 66.91 | English | Welsh / Scottish / Northern Irish / British |
| Outsourced | Irish | 17 | 14.86 | 1683 | 1708.36 | 0.87 | Irish | NA |
| Outsourced | Gypsy or Irish Traveller | 2 | 2.48 | 1683 | 1708.36 | 0.14 | Gypsy or Irish Traveller | NA |
| Outsourced | Roma | 3 | 2.25 | 1683 | 1708.36 | 0.13 | Roma | NA |
| Outsourced | Any other White background | 80 | 93.96 | 1683 | 1708.36 | 5.50 | Any other White background | NA |
| Outsourced | White and Black Caribbean | 11 | 5.53 | 1683 | 1708.36 | 0.32 | White and Black Caribbean | NA |
| Outsourced | White and Black African | 26 | 14.61 | 1683 | 1708.36 | 0.86 | White and Black African | NA |
| Outsourced | White and Asian | 12 | 9.13 | 1683 | 1708.36 | 0.53 | White and Asian | NA |
| Outsourced | Any other Mixed / Multiple ethnic background | 23 | 15.89 | 1683 | 1708.36 | 0.93 | Any other Mixed | Multiple ethnic background |
| Outsourced | Indian | 55 | 73.98 | 1683 | 1708.36 | 4.33 | Indian | NA |
| Outsourced | Pakistani | 49 | 53.85 | 1683 | 1708.36 | 3.15 | Pakistani | NA |
| Outsourced | Bangladeshi | 21 | 23.04 | 1683 | 1708.36 | 1.35 | Bangladeshi | NA |
| Outsourced | Chinese | 12 | 21.04 | 1683 | 1708.36 | 1.23 | Chinese | NA |
| Outsourced | Any other Asian background | 26 | 44.80 | 1683 | 1708.36 | 2.62 | Any other Asian background | NA |
| Outsourced | African | 111 | 69.96 | 1683 | 1708.36 | 4.10 | African | NA |
| Outsourced | Caribbean | 15 | 15.11 | 1683 | 1708.36 | 0.88 | Caribbean | NA |
| Outsourced | Any other Black, Black British, or Caribbean background | 16 | 11.79 | 1683 | 1708.36 | 0.69 | Any other Black | Black British, or Caribbean background |
| Outsourced | Arab | 7 | 12.03 | 1683 | 1708.36 | 0.70 | Arab | NA |
| Outsourced | Any other ethnic group | 3 | 7.06 | 1683 | 1708.36 | 0.41 | Any other ethnic group | NA |
| Outsourced | Don’t think of myself as any of these | 5 | 2.94 | 1683 | 1708.36 | 0.17 | Don’t think of myself as any of these | NA |
| Outsourced | Prefer not to say | 4 | 6.92 | 1683 | 1708.36 | 0.40 | Prefer not to say | NA |
| Outsourced | NA | 61 | 64.07 | 1683 | 1708.36 | 3.75 | NA | NA |
| number | ethnicity |
|---|---|
| 1 | English / Welsh / Scottish / Northern Irish / British |
| 2 | Irish |
| 3 | Gypsy or Irish Traveller |
| 4 | Roma |
| 5 | Any other White background |
| 6 | White and Black Caribbean |
| 7 | White and Black African |
| 8 | White and Asian |
| 9 | Any other Mixed / Multiple ethnic background |
| 10 | Indian |
| 11 | Pakistani |
| 12 | Bangladeshi |
| 13 | Chinese |
| 14 | Any other Asian background |
| 15 | African |
| 16 | Caribbean |
| 17 | Any other Black, Black British, or Caribbean background |
| 18 | Arab |
| 19 | Any other ethnic group |
| 20 | Don’t think of myself as any of these |
| 21 | Prefer not to say |
| 22 | NA |
Below is the same breakdown but with collapsed ethnicity categories19
| outsourcing_status | Ethnicity_collapsed | n | Frequency | N | Sum | Percentage |
|---|---|---|---|---|---|---|
| Not outsourced | White | 6734 | 6687.91 | 8472 | 8446.64 | 79.18 |
| Not outsourced | White other | 379 | 398.98 | 8472 | 8446.64 | 4.72 |
| Not outsourced | Black Caribbean | 158 | 109.78 | 8472 | 8446.64 | 1.30 |
| Not outsourced | Black African | 272 | 177.52 | 8472 | 8446.64 | 2.10 |
| Not outsourced | Mixed other | 120 | 65.99 | 8472 | 8446.64 | 0.78 |
| Not outsourced | South Asian | 310 | 387.30 | 8472 | 8446.64 | 4.59 |
| Not outsourced | East Asian | 70 | 124.50 | 8472 | 8446.64 | 1.47 |
| Not outsourced | Other | 381 | 448.60 | 8472 | 8446.64 | 5.31 |
| Not outsourced | Black other | 36 | 25.60 | 8472 | 8446.64 | 0.30 |
| Not outsourced | Arab | 12 | 20.47 | 8472 | 8446.64 | 0.24 |
| Outsourced | White | 1141 | 1157.93 | 1683 | 1708.36 | 67.78 |
| Outsourced | White other | 85 | 98.68 | 1683 | 1708.36 | 5.78 |
| Outsourced | Black Caribbean | 26 | 20.64 | 1683 | 1708.36 | 1.21 |
| Outsourced | Black African | 137 | 84.58 | 1683 | 1708.36 | 4.95 |
| Outsourced | Mixed other | 35 | 25.02 | 1683 | 1708.36 | 1.46 |
| Outsourced | South Asian | 125 | 150.87 | 1683 | 1708.36 | 8.83 |
| Outsourced | East Asian | 12 | 21.04 | 1683 | 1708.36 | 1.23 |
| Outsourced | Other | 99 | 125.78 | 1683 | 1708.36 | 7.36 |
| Outsourced | Black other | 16 | 11.79 | 1683 | 1708.36 | 0.69 |
| Outsourced | Arab | 7 | 12.03 | 1683 | 1708.36 | 0.70 |
Comparison of ethnicities indicates that some groups are statistically more likely to be outsourced than others
- Black African workers are 2.75 times more likely than White workers to be outsourced.
- Mixed other workers are 2.19 times more likely than White workers to be outsourced.
- South Asian workers are 2.25 times more likely than White workers to be outsourced.
- Other workers are 1.62 times more likely than White workers to be outsourced.
- Black other workers are 2.66 times more likely than White workers to be outsourced.
- Arab workers are 3.39 times more likely than White workers to be outsourced.
White other, Black Caribbean, and East Asian workers are no more or less likely than White workers to be outsourced.
Paysplit20
Another way of looking at this is to calculate, for each ethnicity, the proportion of workers in each outsourcing group. Doing so yields the plot below.21
| Ethnicity | Outsourcing group | Frequency | Sum | Percentage |
|---|---|---|---|---|
| English / Welsh / Scottish / Northern Irish / British | Not outsourced | 6623 | 7747 | 85.49 |
| English / Welsh / Scottish / Northern Irish / British | Outsourced | 1124 | 7747 | 14.51 |
| Irish | Not outsourced | 111 | 128 | 86.72 |
| Irish | Outsourced | 17 | 128 | 13.28 |
| Gypsy or Irish Traveller | Not outsourced | 6 | 8 | 75.00 |
| Gypsy or Irish Traveller | Outsourced | 2 | 8 | 25.00 |
| Roma | Not outsourced | 4 | 7 | 57.14 |
| Roma | Outsourced | 3 | 7 | 42.86 |
| Any other White background | Not outsourced | 369 | 449 | 82.18 |
| Any other White background | Outsourced | 80 | 449 | 17.82 |
| White and Black Caribbean | Not outsourced | 84 | 95 | 88.42 |
| White and Black Caribbean | Outsourced | 11 | 95 | 11.58 |
| White and Black African | Not outsourced | 40 | 66 | 60.61 |
| White and Black African | Outsourced | 26 | 66 | 39.39 |
| White and Asian | Not outsourced | 61 | 73 | 83.56 |
| White and Asian | Outsourced | 12 | 73 | 16.44 |
| Any other Mixed / Multiple ethnic background | Not outsourced | 59 | 82 | 71.95 |
| Any other Mixed / Multiple ethnic background | Outsourced | 23 | 82 | 28.05 |
| Indian | Not outsourced | 170 | 225 | 75.56 |
| Indian | Outsourced | 55 | 225 | 24.44 |
| Pakistani | Not outsourced | 93 | 142 | 65.49 |
| Pakistani | Outsourced | 49 | 142 | 34.51 |
| Bangladeshi | Not outsourced | 47 | 68 | 69.12 |
| Bangladeshi | Outsourced | 21 | 68 | 30.88 |
| Chinese | Not outsourced | 70 | 82 | 85.37 |
| Chinese | Outsourced | 12 | 82 | 14.63 |
| Any other Asian background | Not outsourced | 57 | 83 | 68.67 |
| Any other Asian background | Outsourced | 26 | 83 | 31.33 |
| African | Not outsourced | 232 | 343 | 67.64 |
| African | Outsourced | 111 | 343 | 32.36 |
| Caribbean | Not outsourced | 74 | 89 | 83.15 |
| Caribbean | Outsourced | 15 | 89 | 16.85 |
| Any other Black, Black British, or Caribbean background | Not outsourced | 36 | 52 | 69.23 |
| Any other Black, Black British, or Caribbean background | Outsourced | 16 | 52 | 30.77 |
| Arab | Not outsourced | 12 | 19 | 63.16 |
| Arab | Outsourced | 7 | 19 | 36.84 |
| Any other ethnic group | Not outsourced | 13 | 16 | 81.25 |
| Any other ethnic group | Outsourced | 3 | 16 | 18.75 |
| Don’t think of myself as any of these | Not outsourced | 7 | 12 | 58.33 |
| Don’t think of myself as any of these | Outsourced | 5 | 12 | 41.67 |
| Prefer not to say | Not outsourced | 22 | 26 | 84.62 |
| Prefer not to say | Outsourced | 4 | 26 | 15.38 |
| NA | Not outsourced | 282 | 343 | 82.22 |
| NA | Outsourced | 61 | 343 | 17.78 |
Ethnicity repeat: Outsourcing groups22
| outsourcing_group | Ethnicity_labelled | n | Frequency | N | Sum | Percentage | Ethnicity_short | Ethnicity detail |
|---|---|---|---|---|---|---|---|---|
| Not outsourced | English / Welsh / Scottish / Northern Irish / British | 6623 | 6589.16 | 8472 | 8446.64 | 78.01 | English | Welsh / Scottish / Northern Irish / British |
| Not outsourced | Irish | 111 | 98.75 | 8472 | 8446.64 | 1.17 | Irish | NA |
| Not outsourced | Gypsy or Irish Traveller | 6 | 8.32 | 8472 | 8446.64 | 0.10 | Gypsy or Irish Traveller | NA |
| Not outsourced | Roma | 4 | 5.24 | 8472 | 8446.64 | 0.06 | Roma | NA |
| Not outsourced | Any other White background | 369 | 385.42 | 8472 | 8446.64 | 4.56 | Any other White background | NA |
| Not outsourced | White and Black Caribbean | 84 | 53.22 | 8472 | 8446.64 | 0.63 | White and Black Caribbean | NA |
| Not outsourced | White and Black African | 40 | 20.43 | 8472 | 8446.64 | 0.24 | White and Black African | NA |
| Not outsourced | White and Asian | 61 | 32.39 | 8472 | 8446.64 | 0.38 | White and Asian | NA |
| Not outsourced | Any other Mixed / Multiple ethnic background | 59 | 33.60 | 8472 | 8446.64 | 0.40 | Any other Mixed | Multiple ethnic background |
| Not outsourced | Indian | 170 | 237.76 | 8472 | 8446.64 | 2.81 | Indian | NA |
| Not outsourced | Pakistani | 93 | 96.09 | 8472 | 8446.64 | 1.14 | Pakistani | NA |
| Not outsourced | Bangladeshi | 47 | 53.46 | 8472 | 8446.64 | 0.63 | Bangladeshi | NA |
| Not outsourced | Chinese | 70 | 124.50 | 8472 | 8446.64 | 1.47 | Chinese | NA |
| Not outsourced | Any other Asian background | 57 | 118.35 | 8472 | 8446.64 | 1.40 | Any other Asian background | NA |
| Not outsourced | African | 232 | 157.09 | 8472 | 8446.64 | 1.86 | African | NA |
| Not outsourced | Caribbean | 74 | 56.56 | 8472 | 8446.64 | 0.67 | Caribbean | NA |
| Not outsourced | Any other Black, Black British, or Caribbean background | 36 | 25.60 | 8472 | 8446.64 | 0.30 | Any other Black | Black British, or Caribbean background |
| Not outsourced | Arab | 12 | 20.47 | 8472 | 8446.64 | 0.24 | Arab | NA |
| Not outsourced | Any other ethnic group | 13 | 23.40 | 8472 | 8446.64 | 0.28 | Any other ethnic group | NA |
| Not outsourced | Don’t think of myself as any of these | 7 | 5.87 | 8472 | 8446.64 | 0.07 | Don’t think of myself as any of these | NA |
| Not outsourced | Prefer not to say | 22 | 23.54 | 8472 | 8446.64 | 0.28 | Prefer not to say | NA |
| Not outsourced | NA | 282 | 277.44 | 8472 | 8446.64 | 3.28 | NA | NA |
| Outsourced | English / Welsh / Scottish / Northern Irish / British | 742 | 778.19 | 1123 | 1161.08 | 67.02 | English | Welsh / Scottish / Northern Irish / British |
| Outsourced | Irish | 12 | 11.23 | 1123 | 1161.08 | 0.97 | Irish | NA |
| Outsourced | Gypsy or Irish Traveller | 2 | 2.48 | 1123 | 1161.08 | 0.21 | Gypsy or Irish Traveller | NA |
| Outsourced | Roma | 2 | 1.48 | 1123 | 1161.08 | 0.13 | Roma | NA |
| Outsourced | Any other White background | 63 | 72.25 | 1123 | 1161.08 | 6.22 | Any other White background | NA |
| Outsourced | White and Black Caribbean | 8 | 3.87 | 1123 | 1161.08 | 0.33 | White and Black Caribbean | NA |
| Outsourced | White and Black African | 21 | 11.08 | 1123 | 1161.08 | 0.95 | White and Black African | NA |
| Outsourced | White and Asian | 9 | 5.80 | 1123 | 1161.08 | 0.50 | White and Asian | NA |
| Outsourced | Any other Mixed / Multiple ethnic background | 15 | 9.84 | 1123 | 1161.08 | 0.85 | Any other Mixed | Multiple ethnic background |
| Outsourced | Indian | 32 | 43.96 | 1123 | 1161.08 | 3.79 | Indian | NA |
| Outsourced | Pakistani | 29 | 32.69 | 1123 | 1161.08 | 2.82 | Pakistani | NA |
| Outsourced | Bangladeshi | 15 | 17.95 | 1123 | 1161.08 | 1.55 | Bangladeshi | NA |
| Outsourced | Chinese | 7 | 12.75 | 1123 | 1161.08 | 1.10 | Chinese | NA |
| Outsourced | Any other Asian background | 17 | 30.35 | 1123 | 1161.08 | 2.61 | Any other Asian background | NA |
| Outsourced | African | 74 | 47.20 | 1123 | 1161.08 | 4.07 | African | NA |
| Outsourced | Caribbean | 10 | 10.40 | 1123 | 1161.08 | 0.90 | Caribbean | NA |
| Outsourced | Any other Black, Black British, or Caribbean background | 13 | 9.46 | 1123 | 1161.08 | 0.81 | Any other Black | Black British, or Caribbean background |
| Outsourced | Arab | 3 | 4.97 | 1123 | 1161.08 | 0.43 | Arab | NA |
| Outsourced | Any other ethnic group | 1 | 1.52 | 1123 | 1161.08 | 0.13 | Any other ethnic group | NA |
| Outsourced | Don’t think of myself as any of these | 4 | 2.54 | 1123 | 1161.08 | 0.22 | Don’t think of myself as any of these | NA |
| Outsourced | Prefer not to say | 1 | 1.67 | 1123 | 1161.08 | 0.14 | Prefer not to say | NA |
| Outsourced | NA | 43 | 49.38 | 1123 | 1161.08 | 4.25 | NA | NA |
| Likely agency | English / Welsh / Scottish / Northern Irish / British | 180 | 174.33 | 269 | 266.54 | 65.41 | English | Welsh / Scottish / Northern Irish / British |
| Likely agency | Irish | 1 | 0.66 | 269 | 266.54 | 0.25 | Irish | NA |
| Likely agency | Roma | 1 | 0.77 | 269 | 266.54 | 0.29 | Roma | NA |
| Likely agency | Any other White background | 10 | 13.33 | 269 | 266.54 | 5.00 | Any other White background | NA |
| Likely agency | White and Black Caribbean | 1 | 0.69 | 269 | 266.54 | 0.26 | White and Black Caribbean | NA |
| Likely agency | White and Black African | 2 | 0.91 | 269 | 266.54 | 0.34 | White and Black African | NA |
| Likely agency | White and Asian | 2 | 2.54 | 269 | 266.54 | 0.95 | White and Asian | NA |
| Likely agency | Any other Mixed / Multiple ethnic background | 5 | 4.33 | 269 | 266.54 | 1.63 | Any other Mixed | Multiple ethnic background |
| Likely agency | Indian | 8 | 11.83 | 269 | 266.54 | 4.44 | Indian | NA |
| Likely agency | Pakistani | 8 | 9.74 | 269 | 266.54 | 3.65 | Pakistani | NA |
| Likely agency | Bangladeshi | 3 | 2.61 | 269 | 266.54 | 0.98 | Bangladeshi | NA |
| Likely agency | Chinese | 1 | 1.58 | 269 | 266.54 | 0.59 | Chinese | NA |
| Likely agency | Any other Asian background | 5 | 8.34 | 269 | 266.54 | 3.13 | Any other Asian background | NA |
| Likely agency | African | 22 | 12.82 | 269 | 266.54 | 4.81 | African | NA |
| Likely agency | Caribbean | 3 | 3.39 | 269 | 266.54 | 1.27 | Caribbean | NA |
| Likely agency | Any other Black, Black British, or Caribbean background | 1 | 1.16 | 269 | 266.54 | 0.44 | Any other Black | Black British, or Caribbean background |
| Likely agency | Arab | 2 | 3.42 | 269 | 266.54 | 1.28 | Arab | NA |
| Likely agency | Any other ethnic group | 1 | 3.93 | 269 | 266.54 | 1.48 | Any other ethnic group | NA |
| Likely agency | Don’t think of myself as any of these | 1 | 0.40 | 269 | 266.54 | 0.15 | Don’t think of myself as any of these | NA |
| Likely agency | Prefer not to say | 1 | 0.52 | 269 | 266.54 | 0.20 | Prefer not to say | NA |
| Likely agency | NA | 11 | 9.20 | 269 | 266.54 | 3.45 | NA | NA |
| High indicators | English / Welsh / Scottish / Northern Irish / British | 202 | 190.56 | 291 | 280.74 | 67.88 | English | Welsh / Scottish / Northern Irish / British |
| High indicators | Irish | 4 | 2.97 | 291 | 280.74 | 1.06 | Irish | NA |
| High indicators | Any other White background | 7 | 8.37 | 291 | 280.74 | 2.98 | Any other White background | NA |
| High indicators | White and Black Caribbean | 2 | 0.97 | 291 | 280.74 | 0.35 | White and Black Caribbean | NA |
| High indicators | White and Black African | 3 | 2.62 | 291 | 280.74 | 0.93 | White and Black African | NA |
| High indicators | White and Asian | 1 | 0.78 | 291 | 280.74 | 0.28 | White and Asian | NA |
| High indicators | Any other Mixed / Multiple ethnic background | 3 | 1.71 | 291 | 280.74 | 0.61 | Any other Mixed | Multiple ethnic background |
| High indicators | Indian | 15 | 18.18 | 291 | 280.74 | 6.48 | Indian | NA |
| High indicators | Pakistani | 12 | 11.43 | 291 | 280.74 | 4.07 | Pakistani | NA |
| High indicators | Bangladeshi | 3 | 2.48 | 291 | 280.74 | 0.88 | Bangladeshi | NA |
| High indicators | Chinese | 4 | 6.70 | 291 | 280.74 | 2.39 | Chinese | NA |
| High indicators | Any other Asian background | 4 | 6.10 | 291 | 280.74 | 2.17 | Any other Asian background | NA |
| High indicators | African | 15 | 9.93 | 291 | 280.74 | 3.54 | African | NA |
| High indicators | Caribbean | 2 | 1.31 | 291 | 280.74 | 0.47 | Caribbean | NA |
| High indicators | Any other Black, Black British, or Caribbean background | 2 | 1.16 | 291 | 280.74 | 0.41 | Any other Black | Black British, or Caribbean background |
| High indicators | Arab | 2 | 3.63 | 291 | 280.74 | 1.29 | Arab | NA |
| High indicators | Any other ethnic group | 1 | 1.60 | 291 | 280.74 | 0.57 | Any other ethnic group | NA |
| High indicators | Prefer not to say | 2 | 4.72 | 291 | 280.74 | 1.68 | Prefer not to say | NA |
| High indicators | NA | 7 | 5.50 | 291 | 280.74 | 1.96 | NA | NA |
| number | ethnicity |
|---|---|
| 1 | English / Welsh / Scottish / Northern Irish / British |
| 2 | Irish |
| 3 | Gypsy or Irish Traveller |
| 4 | Roma |
| 5 | Any other White background |
| 6 | White and Black Caribbean |
| 7 | White and Black African |
| 8 | White and Asian |
| 9 | Any other Mixed / Multiple ethnic background |
| 10 | Indian |
| 11 | Pakistani |
| 12 | Bangladeshi |
| 13 | Chinese |
| 14 | Any other Asian background |
| 15 | African |
| 16 | Caribbean |
| 17 | Any other Black, Black British, or Caribbean background |
| 18 | Arab |
| 19 | Any other ethnic group |
| 20 | Don’t think of myself as any of these |
| 21 | Prefer not to say |
| 22 | NA |
| outsourcing_group | Ethnicity_collapsed | n | Frequency | N | Sum | Percentage |
|---|---|---|---|---|---|---|
| Not outsourced | White | 6734 | 6687.91 | 8472 | 8446.64 | 79.18 |
| Not outsourced | White other | 379 | 398.98 | 8472 | 8446.64 | 4.72 |
| Not outsourced | Black Caribbean | 158 | 109.78 | 8472 | 8446.64 | 1.30 |
| Not outsourced | Black African | 272 | 177.52 | 8472 | 8446.64 | 2.10 |
| Not outsourced | Mixed other | 120 | 65.99 | 8472 | 8446.64 | 0.78 |
| Not outsourced | South Asian | 310 | 387.30 | 8472 | 8446.64 | 4.59 |
| Not outsourced | East Asian | 70 | 124.50 | 8472 | 8446.64 | 1.47 |
| Not outsourced | Other | 381 | 448.60 | 8472 | 8446.64 | 5.31 |
| Not outsourced | Black other | 36 | 25.60 | 8472 | 8446.64 | 0.30 |
| Not outsourced | Arab | 12 | 20.47 | 8472 | 8446.64 | 0.24 |
| Outsourced | White | 754 | 789.42 | 1123 | 1161.08 | 67.99 |
| Outsourced | White other | 67 | 76.21 | 1123 | 1161.08 | 6.56 |
| Outsourced | Black Caribbean | 18 | 14.27 | 1123 | 1161.08 | 1.23 |
| Outsourced | Black African | 95 | 58.28 | 1123 | 1161.08 | 5.02 |
| Outsourced | Mixed other | 24 | 15.64 | 1123 | 1161.08 | 1.35 |
| Outsourced | South Asian | 76 | 94.60 | 1123 | 1161.08 | 8.15 |
| Outsourced | East Asian | 7 | 12.75 | 1123 | 1161.08 | 1.10 |
| Outsourced | Other | 66 | 85.46 | 1123 | 1161.08 | 7.36 |
| Outsourced | Black other | 13 | 9.46 | 1123 | 1161.08 | 0.81 |
| Outsourced | Arab | 3 | 4.97 | 1123 | 1161.08 | 0.43 |
| Likely agency | White | 181 | 174.99 | 269 | 266.54 | 65.65 |
| Likely agency | White other | 11 | 14.10 | 269 | 266.54 | 5.29 |
| Likely agency | Black Caribbean | 4 | 4.09 | 269 | 266.54 | 1.53 |
| Likely agency | Black African | 24 | 13.74 | 269 | 266.54 | 5.15 |
| Likely agency | Mixed other | 7 | 6.88 | 269 | 266.54 | 2.58 |
| Likely agency | South Asian | 19 | 24.18 | 269 | 266.54 | 9.07 |
| Likely agency | East Asian | 1 | 1.58 | 269 | 266.54 | 0.59 |
| Likely agency | Other | 19 | 22.39 | 269 | 266.54 | 8.40 |
| Likely agency | Black other | 1 | 1.16 | 269 | 266.54 | 0.44 |
| Likely agency | Arab | 2 | 3.42 | 269 | 266.54 | 1.28 |
| High indicators | White | 206 | 193.53 | 291 | 280.74 | 68.93 |
| High indicators | White other | 7 | 8.37 | 291 | 280.74 | 2.98 |
| High indicators | Black Caribbean | 4 | 2.28 | 291 | 280.74 | 0.81 |
| High indicators | Black African | 18 | 12.56 | 291 | 280.74 | 4.47 |
| High indicators | Mixed other | 4 | 2.50 | 291 | 280.74 | 0.89 |
| High indicators | South Asian | 30 | 32.08 | 291 | 280.74 | 11.43 |
| High indicators | East Asian | 4 | 6.70 | 291 | 280.74 | 2.39 |
| High indicators | Other | 14 | 17.93 | 291 | 280.74 | 6.39 |
| High indicators | Black other | 2 | 1.16 | 291 | 280.74 | 0.41 |
| High indicators | Arab | 2 | 3.63 | 291 | 280.74 | 1.29 |
Arrival in the UK
A greater proportion of outsourced workers were not born in the UK (24.06%) compared to non-outsourced workers (13.6%).23 This difference is statistically significant; outsourced workers are 2.01 times more likely to have been born outside the UK than non-outsourced workers.
Looking at the figure below, it appears that no particular arrival time is especially common amongst the outsourced group, with a relatively equal distribution across arrival times (though potentially a slightly larger proportion fall into the ‘Within the last 10 years category’). The is broadly the case for the likely agency and high indicators groups too, though note that amongst likely agency there is a slightly larger proportion of workers who have arrived within the last year.
| outsourcing_status | BORNUK | Frequency | Sum | Percentage |
|---|---|---|---|---|
| Not outsourced | I was born in the UK | 7320 | 8472 | 86.40 |
| Not outsourced | Within the last year | 115 | 8472 | 1.36 |
| Not outsourced | Within the last 3 years | 135 | 8472 | 1.59 |
| Not outsourced | Within the last 5 years | 116 | 8472 | 1.37 |
| Not outsourced | Within the last 10 years | 183 | 8472 | 2.16 |
| Not outsourced | Within the last 15 years | 137 | 8472 | 1.62 |
| Not outsourced | Within the last 20 years | 127 | 8472 | 1.50 |
| Not outsourced | Within the last 30 years | 103 | 8472 | 1.22 |
| Not outsourced | More than 30 years ago | 149 | 8472 | 1.76 |
| Not outsourced | Prefer not to say | 87 | 8472 | 1.03 |
| Outsourced | I was born in the UK | 1278 | 1683 | 75.94 |
| Outsourced | Within the last year | 65 | 1683 | 3.86 |
| Outsourced | Within the last 3 years | 45 | 1683 | 2.67 |
| Outsourced | Within the last 5 years | 40 | 1683 | 2.38 |
| Outsourced | Within the last 10 years | 71 | 1683 | 4.22 |
| Outsourced | Within the last 15 years | 53 | 1683 | 3.15 |
| Outsourced | Within the last 20 years | 44 | 1683 | 2.61 |
| Outsourced | Within the last 30 years | 14 | 1683 | 0.83 |
| Outsourced | More than 30 years ago | 39 | 1683 | 2.32 |
| Outsourced | Prefer not to say | 34 | 1683 | 2.02 |
Paysplit24
Results of a glm suggest that any arrival time positively predicts outsroucing status, apart from ‘within the last 15 years’ and ‘within the last 30 years’. Takeaway is that people having migrated in the past 20 years are more likely to be outsourced than people born in the uk. People having migrated in the past 15 years are less likely to be outsourced if they’re in the low income group, whilst people having migrated in the past 30 years are more likely to be outsourced if they’re in the low income group. I would take caution in interpreting these interaction results in isolation as they may be influence by other factors (e.g., ethnicity).
We should test this with a more complex model that includes covariates
The plot below shows the percentage of outrouced and non-outsourced people by income group and arrival time.
Interaction: Ethnicity and arrival in UK25
For the following ethnicites, more than 50% were born in the UK:
- NA
- Prefer not to say
- Any other Black, Black British, or Caribbean background
- Caribbean
- Pakistani
- Any other Mixed/Multiple ethnic background
- White and Asian
- White and Black Caribbean
- Gypsy or Irish Traveller
- Irish
- English/Welsh/Scottish/Northern Irish/British
For the following ethnicities around 50% were born in the UK, with remaining 50% split across arrival times:
- Don’t think of myself as any of these (second largest proportion within the last 15 years)
- Any other ethnic group (2nd largest proportion wihtin the last 10 years)
- Bangladeshi (2nd largest proprotion prefer not to say)
- Indian (2nd largest proportion wthin the last 3 years)
- White and Black African (2nd largest proportion within the last 3 years)
For the following ethnicities, less than 50% were born in the UK:
- Arab
- African (largest proportion within the last year)
- Any other Asian background (2nd an 3rd largest proportions are within the last year and within the last 15 years)
- Chinese (2nd and 3rd largest proportions are within the last 3 years, wihtin the last 15 years)
- Any other White background (largest proportion within the last 10 years)
- Roma (largest proportion within the last 5 years)
Exploring the interaction between ethnicity and arrival time shows some significant effects whereby the likelihood of someone being outsourced is different for some combinations of ethnicity and arrival time, compared to White people born in the UK. These groups are:
White other and came to UK recently
Black African and came to UK recently
South Asian and came to UK recently
East Asian and came to UK recently
White other and came to UK not recently
South Asian and came to UK not recently
Other ethnicity and prefer not to say (not very informative)
Breaking these effects down shows some interesting patterns in the interaction (see plot below)
For people born in the UK, a person is more likely to be outsourced if they are Black African or South Asian. For all other arrival times there are no differences by ethnicity.
Exploring within each ethnicity (see plot below) shows that arrival time is generally only relevant for three groups:
- White; a White person is more likely to be outsourced if they came to the UK recently, came to the UK not recently, or preferred not to say (compared to those born in the UK)
- East Asian; an East Asian person is more likely to be outsourced if they came to the UK not recently (compared to born in the UK, and compared to came to the UK recently)
- Other; people of ‘Other’ ethnicity are more likely to be outsourced if they came to the UK not recently (compared to born in the UK)
Overall, this pattern of results paints a racialised picture with strong colonial undertones. UK-born Black African and South Asian workers are more likely than UK-born White workers to be outsourced. For these and most other non-White groups, arrival time in the UK is not relevant for predicting outsourcing status; a Black African is just as likely to be outsourced if they arrived in the UK today than if they were born in the UK.
However, the story is not one only of race. Non-UK-born White people are more likely to be outsourced than UK-born White people. For East Asian and people of ‘Other’ ethnicity, outsroucing is more prevalent for those having lived here for 15 years or more, compared to the those born in the UK and those who have arrived more recently. For these groups, arrival time is therefore a relevant factor in the likelihood of being outsourced.
Repeat: Outsourcing groups
Gender26
In terms of Gender, the outsourced group has a larger proportion of males (57.81% compared to 46.4%). This difference is statistically significant; outsourced workers are 1.58 times more likely to have be male than non-outsourced workers.
Paysplit27
A glm finds that income group is a significant factor for females but not for males. Whilst males are more likely than females overall to be outsourced, females are significantly more likely to be outsourced if they are in the low income group than if they are in the not-low income group. The plots below show the percentage of outsourced workers by income group and gender.
Footnotes
../outputs/data/sector_summary_paysplit_outsourcing_group.csv↩︎
/outputs/data/majorgroupcode_summary_long.csv & outputs/data/majorgroupcode_summary_wide.csv↩︎
outputs/data/ethnicity_stats_paysplit_1.csv and outputs/data/ethnicity_stats_paysplit_collapsed.csv↩︎
outputs/data/interaction_ethnicity_arrival_in_UK_stats.csv↩︎